Manage Planning and Billing Resource Breakdown
Structures

Planning Resource
Breakdown Structures: Explained

A planning resource breakdown structure is a list of valid planning resource formats available for financial
and project planning and control. A resource format is a hierarchy
of up to three resource types.

Before you can set up resource breakdown structures,
you must set up the following:

Setting up planning resource breakdown structures
is a three-step guided process. The following diagram illustrates
the flow of planning resource breakdown structures as they are created
and added to projects or project templates.

As shown in the diagram, the steps to set up planning
resource breakdown structures include the following:

Define planning resource breakdown
structure details

Select resource formats

Add planning resources

The last two steps shown in the diagram (add resource
breakdown structures to a project or template and select the primary
resource breakdown structure) occur during project or template definition.

Resource Breakdown Structure Details

Planning resource breakdown structure details include
the following attributes:

Date range during which this planning
resource breakdown structure is available to assign to projects

Project unit

Indicator that specifies whether
resource changes are allowed at the project level

Important

If resource changes are not allowed at the project
level, then all projects with the same planning resource breakdown
structure share the same set of resources, and it is not possible
to define additional resources in the context of an individual project.
For example, new resources and resource formats that are added to
a planning resource breakdown structure for one project are available
to all projects with this planning resource breakdown structure.

If resource changes are allowed at the project level,
then in addition to the resources defined centrally on this resource
breakdown structure, you can add resources for an individual project
that are not available to other projects with the same planning resource
breakdown structure. However, resource formats are still shared between
the projects.

Resource Formats

You select resource formats to add to the
planning resource breakdown structure.

Planning resource breakdown structures can have resource
formats with up to three hierarchical levels of resource types, as
shown in the following example:

Organization

Expenditure category

Named person

If you select a child resource format, the application
automatically selects the parent. For example, if you select the resource
format of organization-expenditure category-named person, the application
automatically selects the organization-expenditure category format
and expenditure category format.

The resource breakdown structure consists of one or
more hierarchies of resource elements. An element is a resource type,
such as an organization or job, or a combination of resource type
and specified resource, such as the job of consultant or a person
named Amy Marlin.

The following diagram shows examples of hierarchical
levels of resource elements:

Planning Resources

You can add planning resources to any level of the
resource format. You are not required to add resources to every level.

For example, assume that your resource breakdown structure
has a resource format with three hierarchical levels. The top level
is organization, the second level is expenditure category, and the
third level is named person. You can add an organization resource
to the first level, an expenditure category resource to the second
level, and a named person to the third level. Alternatively, you may
add a named person to the third level only, and not add planning resources
to the first two levels.

After you add planning resources to the resource breakdown
structure, you can preview actual transaction associations to find
out where actual transaction amounts would be mapped in the project
plan, budget, or forecast.

You update the resource mappings with these planning
resources for the planning resource breakdown structures that are
used on the project plan and in project forecasts. When you update
the mappings, the project performance reporting data are synchronized
with the planning resource breakdown structure.

Primary Resource Breakdown Structure

You designate one planning resource breakdown
structure as the primary structure on a project. The primary planning
resource breakdown structure is used for project planning.

Billing Resource
Breakdown Structures: Explained

Use a billing resource breakdown structure
to manage billing
controls.

You need only a single level billing resource breakdown structures to create billing controls.

Predefined Billing Resource Breakdown Structures

Control Billing: Provides a list of resources you can reference when creating billing
controls on regular contracts.

Control Intercompany
Billing: Provides a list of resources you can reference
when creating billing controls on intercompany and interproject contracts.

You cannot create or delete these billing resource
breakdown structures. You can edit the resource formats and specify
the associated billing resources to meet the needs of your enterprise.

Resource Formats and Resource Classes: How
They Work Together to Create Planning Resources

The resources you can create for planning
and billing resource breakdown structures are determined by a combination
of predefined resource classes and the resource format hierarchies
you select for use.

Resource Formats and Resource Format Hierarchies

Before creating planning or billing resources, you
must select the resource formats and resource format hierarchies you
want to use on your resource breakdown structure. For example, if
you want to plan for project-related expenses such as air fare, then
you must select resource format hierarchies created using the resource
type Expenditure Type.

Also, as resource format hierarchies support up to
three levels, selecting from the available hierarchies enables you
to determine the granularity with which resources are created.

For example, for planning resource breakdown structures
used for high-level or preliminary planning, you may decide to enable
only the Resource Class resource
format. You can then create and use planning resources representing
the four resource classes: Labor, Equipment, Material Items, and Financial
Resources.

To plan in greater detail, you may decide to use a
two-level resource format hierarchy, such as Resource Class: Job or a three-level hierarchy such as Resource Class: Job: Named Person. You can
then create a resource such as Labor: Electrical Engineer or Labor:
Electrical Engineer: Chris Black.

Note

Selecting more granular resource formats automatically
selects resource formats higher up within the same hierarchy. For
example, if you select the resource format Expenditure Type: Named Person: Job, then the resource
formats Expenditure Type: Named Person and Expenditure Type are automatically
selected for use.

Resource Classes

Resource classes influence the creation of planning
and billing resources in the following ways:

Resource class as a resource format:
As mentioned earlier, Resource Class is a resource type that is available for use within resource format
hierarchies on planning and billing resource breakdown structures.

Predefined association with resource
formats: For each resource format, you can create planning or billing
resources based on certain resource classes. For example, if the resource
format contains Job, then the only available resource class is Labor.
However, if the resource format is Expenditure Category, then you
can select any of the resource classes (Labor, Material, Equipment,
and Financial Resources) when you create a resource.

Resource Formats: Explained

Resource formats are predefined resource types
or hierarchies of resource types. You create resources for planning
or billing resource breakdown structures based on resource formats.

Following is a description of resource types and resource
format hierarchies.

Resource Types

Resource formats are created based on the following
predefined resource types.

Name

Description

Named Person

Employee or a contingent worker who performs services
for the deploying enterprise.

Event Type

Implementation-defined classification of events that
determines the revenue and invoice effect of an event.

Categorization of inventory items that is used to
track the aggregate consumption of material.

Inventory Item

An item that can be purchased or produced, and for
which you can budget and track the costs associated with the consumption
of the item.

Job

A set of duties to which an employee can be assigned.

Organization

Divisions, groups, cost centers, or other organizational
units within a company.

System Person Type

Distinguishes employees and contingent workers. For
example, assume that a project requires 100 hours of labor effort
and you have resources only for 80 hours. You can plan 80 hours of
employee time and 20 hours of contingent worker time on the project.

Project Nonlabor Resource

Implementation-defined asset or pool of assets. An
asset may represent actual pieces of equipment whose time is consumed,
or an asset whose output is consumed.

Resource Class

Higher-level grouping of planning resources, into
labor, equipment, material items, and financial resources, that drives
how resources are used.

Revenue Category

Implementation-defined grouping of expenditure types
by type of revenue.

Supplier

A business or individual that provides goods or services,
or both in return for payment.

Resource Format Hierarchies

Resource formats consist of one resource type or a
hierarchy of up to three resource types. Before you add planning resources
to a planning or billing resource breakdown structure, you must select
the resource formats you want to use. For example, you can add the
resource formats Job, Job: Organization, and Job: Organization: Named Person to your resource breakdown
structure.

The resource formats and resource format hierarchy
determine how planning amounts roll up and are displayed when you
view financial and project plans by resource structure. Thus, each
resource format hierarchy represents a separate structure. For example,
the resource format hierarchies Job: Expenditure
Type: Organization and Organization:
Expenditure Type: Job are distinct.

Resource Mapping Considerations

You can update resource mappings
after you change resource formats or add resources, and save the resource breakdown
structure.

Baseline project plan values are
not affected by the Update Mapping process.

The Update Mapping process applies
only if you do not allow resource changes at the project level.

Tip

If you allow resource changes at the project level,
use the Update Actual Amounts action on the project plan to update
the actual amounts for all tasks on the project plan. Use the process
monitor to start the process to summarize project performance data
for reporting.

After running the Update Mapping
process, regenerate forecast versions to reflect the new actual costs.

How Resource
Mapping Is Calculated

You can track the cost impact of every resource that
has been assigned to a project task and use the resource breakdown
structure to view the breakdown of these costs. Oracle Fusion Projects
associates the costs of the resources used for tasks with branches
and levels in the resource breakdown structure. The process for determining
the correct association is managed by rules of precedence.

Oracle Fusion Projects uses the following rules to
associate cost amounts with resources:

Select the lowest level in the resource
breakdown structure to which a transaction can map.

If there is only one level to which
the transaction maps, the cost amounts are mapped to that level.

If the transaction maps to more than
one level, Oracle Fusion Projects sums the precedence numbers for
all resource types in the branch, and gives precedence to the resource
element in the branch with the lowest sum.

If more than one branch has the lowest
precedence number at the lower level, the application uses the precedence
number of the next level up.

If the sum of precedence numbers
is the same for more than one branch, precedence is given to the branch
with the lowest number at the lowest level.

If one branch contains a user-defined
resource type, precedence is given to the branch that does not contain
a user-defined resource type.

Note

Oracle Fusion Projects gives more precedence to a
lower precedence number. For example, a resource element with a precedence
number of 1 is given precedence over a resource
element with a precedence number of 10.

Rules of precedence are listed in the following table:

Resource Type

Precedence in Labor Resource Class

Precedence in Equipment Resource Class

Precedence in Material Items Resource Class

Precedence in Financial Resources Resource Class

Named Person

1

1

1

1

Project Nonlabor Resource

3

3

3

3

Inventory Item

5

5

5

5

Job

6

6

6

6

Item Category

8

8

8

8

Expenditure Type

9

9

9

9

Event Type

10

10

10

10

Expenditure Category

11

11

11

11

Revenue Category

12

12

12

12

Organization

13

13

15

15

System Person Type

14

14

14

14

Supplier

15

15

13

13

Resource Class

16

16

16

16

Example of Resource Mapping Using Rules of Precedence

This example illustrates that precedence is given
to the branch with the lowest number at the lowest level if the sum
of precedence numbers is the same for more than one branch.

In this example, a time card transaction for a principle
consultant who incurs travel expenses maps to two branches.

The first branch consists of two
levels (1-Person Type: Employee and 1.1-Job: Principle Consultant). The highest level has
a precedence number of 14, and the lowest level
has a precedence number of 6, for a sum of 20 for the branch

The second branch also consists of
two levels (2-Expenditure Category: Expenses and 2.1-Expenditure Type: Travel). The highest
level has a precedence number of 11, and the
lowest level has a precedence number of 9,
for a sum of 20 for the branch.

The transaction cost amount is mapped to the Job: Principle Consultant resource element because it
has the lowest number (6) at the lowest level.

FAQs for Manage Planning and Billing Resource
Breakdown Structures

Can I add new resource formats?

No. Oracle Fusion Projects provides a set
of predefined resource formats. You select resource formats as the
basis for adding resources to planning and billing resource breakdown structures.

Can I add new billing resource breakdown structures?

No. You cannot create billing resource breakdown structures. However, you can add billing resources to the two predefined billing
resource breakdown structures, Control Billing and Control Intercompany
Billing, as required.

What's a default
planning resource breakdown structure?

A default planning resource breakdown structure is
created automatically for each project unit. When you create a project
template, it is selected as the primary planning resource breakdown
structure. You can designate other planning resource breakdown structures
as primary if required. However, you cannot remove the default planning
resource breakdown structure from the project template or project.

What's a primary
resource breakdown structure?

A planning resource breakdown structure that is selected as the primary at the project template or project
level. The primary planning resource breakdown structure is used for
project planning.

When you create a project template, the default planning
resource breakdown structure for the project unit is automatically
added and set as primary. You can add additional planning resource
breakdown structures to the template and set any one of them as primary.
Projects inherit planning resource breakdown structures from the associated
template. As with templates, you can add or remove planning resource
breakdown structures and change the primary designation as required.

Planning resource breakdown structures provide a list of resource formats and associated planning resources
that you can use for project and financial planning, and optionally,
project reporting.

Billing resource breakdown structures are
similar in organization to planning resource breakdown structures.
However, only two predefined billing resource breakdown structures
exist and they provide a restricted set of implementation-defined
resource formats and billing resources that are used for invoicing
and recognizing revenue for contracts.

Reporting resource breakdown structures provide a
resource hierarchy consisting of resources, resource types, and other
resource groupings, which is used for reporting on planning and actual
amounts on a project. Also, unlike planning and billing resource breakdown
structures, you can use reporting resource breakdown structures in
allocation rules to determine the allocation source and basis amounts.

What happens if I change a name used in a resource combination on a resource breakdown
structure?

If you change the value of a resource type
used in a resource combination, you must run the Refresh Resource
Breakdown Structure Element Names process to refresh the value that
appears in the combination. For example, assume you have a resource
that includes the expenditure type named Telephone Charges in the
resource combination. If you change the name from Telephone Charges
to Communication Charges on the expenditure type setup page, the change
will not appear in the resource combination until you run the Refresh
Resource Breakdown Structure Element Names process.

Manage Reporting Resource Breakdown Structures

Reporting Resource
Breakdown Structure Versions: Explained

Use reporting resource breakdown structures
to view the rolled-up data in Oracle Fusion Project Performance Reporting.
The structure provides a method for viewing planned and actual cost
and revenue for a project by resource, resource type, and other resource
groupings.

Versions

Reporting resource breakdown structure versions
provide a history of resource breakdown structures used for resource
reporting.

When a resource breakdown structure is created, a
working version is automatically created. You can have only one working
version at a time. You can make changes to the working version until
you are ready to freeze it.

Only a frozen version can be associated with a project.
When you freeze one version, a new working version is created on which
you can make further changes.

When you freeze a resource breakdown structure version,
that version becomes the current reporting version the next time project
performance data is summarized. Although you can have multiple frozen
versions, only one is used for current reporting at any given time.

Resource Types and Resources

All planning resource breakdown structures
can be used for reporting.

In addition, you can build reporting
resource breakdown structures based on the resource types and resources
already defined in the system. Select the resource type and specify
the associated resource for each level of the hierarchy. You can create
up to ten hierarchical levels in a reporting resource breakdown structure.
This is different than planning resource breakdown structures, which
may contain up to three hierarchical levels.

The User Defined resource type enables you to define
your own groups of resources. Select the User Defined resource type,
enter a free-form definition of the group, and then create hierarchical
levels that link the actual resource types and resources.

Cost Allocations

Enable the Use For
Allocations option if you want to allocate costs with
this reporting resource breakdown structure.

If you enable this option, you can select this reporting
resource breakdown structure when defining source and target details
for an allocation rule. In this situation, the reporting resource
breakdown structure must be assigned to all source or target projects.

FAQs for Manage Reporting Resource Breakdown Structures

Planning resource breakdown structures provide a list of resource formats and associated planning resources
that you can use for project and financial planning, and optionally,
project reporting.

Billing resource breakdown structures are
similar in organization to planning resource breakdown structures.
However, only two predefined billing resource breakdown structures
exist and they provide a restricted set of implementation-defined
resource formats and billing resources that are used for invoicing
and recognizing revenue for contracts.

Reporting resource breakdown structures provide a
resource hierarchy consisting of resources, resource types, and other
resource groupings, which is used for reporting on planning and actual
amounts on a project. Also, unlike planning and billing resource breakdown
structures, you can use reporting resource breakdown structures in
allocation rules to determine the allocation source and basis amounts.